Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver Materials handling $ 160,000 3,200 pounds Weight of materials Machine setup 13,260 390 setups Number of setups Machine repair 1,380 30,000 machine hours Machine hours Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product: Direct labor Direct material:s Machine setup Machine hours Inspections 20 hours 130 pounds 30 setupsS 15.000 machine hours 15 inspections Using ABC, overhead cost assigned to Job #971 for machine setup is: $2,300 $990 $6,500 $690 $1,020 Using ABC, overhead cost assigned to Job #971 for machine repair is: $2,300 $990 $6,500 $690 $1,020